Array Technologies (ARRY) Valuation Check After Q4 Results And Goodwill Impairment Update

Array Technologies (ARRY) drew fresh attention after reporting fourth quarter 2025 results, with weaker quarterly sales, a larger net loss, and a sizeable goodwill impairment charge shaping the market’s reaction.

See our latest analysis for Array Technologies.

The earnings release and higher goodwill impairment appear to have checked the recent rally, with a 1-day share price return of 2.52% but a 7-day share price return decline of 5.98%. The 90-day share price return of 46.86% and 1-year total shareholder return of 60.35% point to momentum that has cooled somewhat after a strong run.

If this earnings update has you reassessing solar exposure, it could be a good time to look at other power infrastructure themes through our list of 24 power grid technology and infrastructure stocks.

With Array now trading close to analyst price targets and carrying a recent history of losses alongside higher revenue, you have to ask yourself: is there still upside left here, or is the market already pricing in future growth?

Most Popular Narrative: 23% Undervalued

Array Technologies last closed at $11.00, while the most followed narrative, according to NateF, points to a fair value of $14.29 that the current price has not yet reached.

ARRY Array Technologies represents a high-potential growth investment in the renewable energy sector, underpinned by global solar demand and supportive policies. However, short-term operational and macroeconomic risks require careful consideration. Strategic investors with a medium- to long-term horizon and a tolerance for volatility may find ARRY an attractive opportunity, provided they closely monitor key drivers and remain disciplined in their approach.

Read the complete narrative.

Curious what has to happen for that higher fair value to make sense? The narrative focuses on the potential for stronger earnings, healthier margins, and a richer future profit multiple. The exact assumptions might surprise you.

Result: Fair Value of $14.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that story can break if competitive pressure from larger tracker players reduces margins, or if policy support for utility scale solar weakens.

Find out about the key risks to this Array Technologies narrative.

Another View: DCF Sends a Different Signal

The user narrative sees Array Technologies as 23% undervalued at a fair value of $14.29, but our DCF model tells a different story. On that approach, ARRY at $11.00 sits slightly above an estimated future cash flow value of $10.79, which points to a small premium rather than a discount. Which story do you think fits your risk tolerance better?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Array Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals from narratives and DCF, do you feel the clock is ticking to form your own view? Take a closer look at the positives that others are already focusing on through our 2 key rewards.

Looking for more investment ideas?

If ARRY has sharpened your thinking, do not stop here. A broader watchlist built from quality screeners can help you spot opportunities before they are crowded.

• Target resilient potential by checking companies with strong finances through our solid balance sheet and fundamentals stocks screener (41 results) and see which names keep risk in check.
• Hunt for mispriced opportunities using our 53 high quality undervalued stocks and compare how these companies stack up against what you already own.
• Strengthen your income focus with our 15 dividend fortresses and see which payers stand out for yield and consistency.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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